Virgin Australia entered administration last month as the airline industry struggles to survive global travel restrictions imposed as a result of the Covid-19 pandemic.
In a statement May 11, the company announced that Vieco 10, the Virgin Group holding company that owns the majority of Virgin Galactic, planned to sell up to 25 million shares, accounting for about 22% of its overall stake in the company.
Branson owns 51 percent stake in Virgin Atlantic.
The revised S-1 filing to sell some of Virgin Group's shares caused the stock to drop significant in early trading on the New York Stock Exchange May 11 but partially recovered, closing down almost 4%.
"As with other Virgin assets, our team will raise as much money against the island as possible to save as many jobs as possible around the Group", Branson said.
Sources said that presentations to potential investors by Virgin Atlantic management, due to start last week, were delayed as Shai Weiss, its chief executive, focused on last Tuesday's announcement to axe 3,150 staff in response to the coronavirus pandemic. Some routes will be switched to Heathrow.
"Because of significant costs to our business caused by unprecedented market conditions which the Covid-19 crisis has brought with it, we are exploring all available options to obtain additional external funding", a spokeswoman said.
He added: "I wish it was not the case, but we will have to reduce the number of people we employ".
Before the coronavirus pandemic, Virgin Atlantic operated flights from Gatwick to destinations such as Orlando, USA; Havana, Cuba; and Montego Bay, Jamaica.
International Consolidated Airlines SA-owned British Airways has also begun a consultation on up to 12,000 redundancies, while Irish carrier Ryanair Holdings PLC has chose to cut 3,000 jobs.
Virgin Atlantic also announced it will not return to using its seven Boeing 747-400 aircraft, which have four engines.
Meanwhile, 15% of the retail estate used by Virgin Holidays will close this year, and the travel firm will be renamed Virgin Atlantic Holidays.
Virgin Airlines asked the British government in March for up to $616 million in relief aid.